Commenting on today’s figures which estimate the costs of uprating State Pension in frozen rate countries, Helen Morrissey, pension specialist at Royal London, said:
“When people retire abroad many do not realise the potential impact this might have on their State Pension entitlement with today’s figures showing more than half a million retirees in countries like Australia and Canada not receiving annual index-linked increases. The estimated costs of delivering this uprating is huge. This situation could get worse if current uprating arrangements for British pensioners living elsewhere in Europe are affected by Brexit. Issues like this can blow a huge hole in someone’s retirement planning and we need to ensure people are aware they could get caught in this trap.”
About Royal London:
Royal London is the largest mutual life, pensions and investment company in the UK, with funds under management of £117 billion, 8.8 million policies in force and 3,745 employees. Figures quoted are as at 30 June 2018.